uploads///Correlation of gas weighted stocks with natural gas

What’s the Correlation of Gas-Weighted Stocks and Natural Gas?

By

Jul. 19 2016, Updated 8:08 a.m. ET

What’s the correlation?

In this part of the series, we’ll continue looking at upstream companies that are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). We’ll look at upstream companies that operate with a production mix of at least 60% natural gas (UNG) (BOIL) (UGAZ) (GASX) (GASL) (FCG).

The following upstream companies had the greatest correlation to natural gas futures between June 18 and July 18, 2016:

  • Southwestern Energy (SWN): 73.4%
  • EQT (EQT): 73.0%
  • Range Resources (RRC): 69.1%
  • Memorial Resource Development (MRD): 67.3%
  • Rice Energy (RICE): 65.4%
  • Contango Oil & Gas (MCF): 64.9%
  • Cabot Oil & Gas (COG): 63.8%

The following natural-gas-weighted stocks correlated the least with natural gas futures over this period:

  • Antero Resources (AR): 32.7%
  • Rex Energy (REXX): 22.2%

Natural-gas-weighted stocks with high correlations to natural gas futures moved with natural gas. On the other hand, stocks with low correlations weren’t impacted as much by natural gas price movements.

In the next part of this series, we’ll see how natural-gas-weighted stocks performed compared to natural gas.

Article continues below advertisement
Advertisement

More From Market Realist

  • MP Materials mine
    Basic Materials
    MP Materials (MP) Is an Attractive Play on Rare Earths
  • Woman looking at data
    Basic Materials
    Should You Buy SLV Stock Before Another Silver Short Squeeze?
  • Freeport-McMoRan employee at a facility
    Basic Materials
    FCX Stock Is a Good Buy for Investors as Copper Prices Top $10,000
  • Alcoa logo
    Basic Materials
    Alcoa (AA) or CENX: Picking the Best Aluminum Stock
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.